Chanel
Xin Gao
Location: Chanel is headquartered in Neuilly-sur-Seine, in the Île-de-France region just outside of Paris. The company sells its products across urope, North !merica, Central and South !merica, !sia, !sia, the "iddle ast, and #ceania.
Brand history: The house of Chanel, more commonly $no%n as Chanel, is a Parisian fashion house in France founded &y 'a&rielle (onheur )Coco* Chanel +-/01. (rand Chanel %as re2olutioni3ed %oman4s fashion %ith her elegance and fashion loo$. 5t is $no%n for classic couture li$e 6the little &lac$ dress6 and famed fragrance Chanel No. 7, Chanel has &een an an haute name in fashion fashion and cosmetics for decades. decades. The company also creates creates %atches and je%elry and has a single license license -- for eye%ear eye%ear %ith 8u9ottica. Founder 'a&rielle 'a&rielle 6Coco6 Chanel Chanel opened her first &outique in /, touting designs $no%n for simplicity. simplicity. !fter Coco Coco died in /0, Chanel:s style stagnated stagnated for years until ;arl 8agerfeld too$ o2er the designs and re2i2ed the la&el &y tapping a younger mar$et. The Chanel logo is an o2erlapping dou&le
Chanel’s Role in Modern Relationship between Woman Woman and Fashion •
Change the %ay %oman thought of her &ody and life style
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>sed simple and comforta&le fa&ric
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Simplified %oman4s clothes &y remo2ing all unnecessary elements and designed to free the mo2ement +&o9y lines, shortened s$irts, remo2ed the corset and freed %oman for the practical acti2ities made necessary &y the %ar1
Financial data & Annual Annual report: !nalyst at (loom&erg, according to this report, com&ined %ith great &eauty and lu9ury-goods companies +l < #r?al, st?e 8auder, Prada, 8@"A 8@"A and ;ering1 2aluations, .7 &illion dollars to Chanel4s o2erall 2aluation. BB list pu&lished last year &y the %orld4s %orld4s largest largest &eauty enterprises, estimated estimated D= Chanel Chanel cosmetic and perfume perfume sales amounted to >S E 7.D7 &illion, &illi on, surpassing the 8@"A 8@"A group the &asis of this calculation, Chanel Aaute Couture accessories and clothing sector re2enue should &e around E G7= million. !ccording to Telsey !d2isory !d2isory company lu9ury analyst a2id Bu of Ne% Hor$ estimated that &eauty and perfume Chanel &usiness proportion of &usiness should &e around 77I, the &asis of this calculation, D= Chanel cosmetic and perfume sales should &e a&out E .D7 &illion, selling Aaute Couture accessories and clothing sector should &e at a&out E D.G7 &illion. !s a reference, ior, %hich is Chanel competitor, fashion sector +e9cluding perfumes &eauty1 in D=, %ith annual sales of J .=G &illion, a&out >S E .7 &illion or so.
Chanel reported D=K re2enue of E0.7 &illion and net income of E.K &illion. Chanel 5nternational (@ files the closely held company:s glo&al financial results %ith ;amer 2an ;oophandel, the utch cham&er of commerce. commerce. Net profit for the fi2e pu&licly pu&licly traded companies the inde9 uses to 2alue Chanel --- Prada, ;ering, 8@"A 8@"A,, 8:#real and stee 8auder -- %as do%n a collecti2e G percent in their D=K fiscal years
Key personnel
Founder )Nose*1
C#
Current designer
Aead Perfumer +Chanel
Coco Chanel
!lain Bertheimer !lain Bertheimer L 'erard Bertheimer
;arl 8agerfeld
Macques Polge
Recent ews Karl Lagerfeld presented his Spring 2017 collection for Chanel on October 4 th, 2016, at Grand Palais in Paris Spring 2017 fashion for Chanel are bright colors and flat bri! baseball caps
Cate!ory There are lots of product lines of Chanel.
-Clothes +Chanel Clothes %as founded in /=/1
-Shoes +Founded %ith clothes in /=/1
-Sunglasses +5n ///, launched a line of sunglasses1 -!ccessories +/0 launched distri&ution of accessories1 founded Parfums Chanel1 -Perfumes +5n /DK, Pierre Bertheimer founded
-Batches +The Chanel %rist%atch di2ision %as esta&lished in /01 -Aand&ags +D.77 Flap &ag came out in Fe&ruary /771 -Cosmetics
-S$in product +// launched s$in care line1
+Founded %ith Me%elries in No2em&er /D1
-Me%elries +Chanel :Aigh Me%elry: %as founded in No2em&er /D1
Cate!ory The la&el positions itself in the top end of the t he lu9ury segment. 5t:s speculated that its perfume and cosmetics sales, particularly its No. 7 scent is Chanel:s Chanel:s &iggest &usiness.
Seasonal factors for Perf"!es
Seasonal factors for #andbags
Spring $ S"!!er %%% &r"it' and fresh scent
Spring $ S"!!er %%% (right color and light )eight
&alll $ *in &al *inter ter %%% *oo *ood' d' and )ar )ar! ! sce scent nt
&alll $*i &al $*inte nterr %%% +ar +ar col color or and hea hea-' -' )ei )eight ght
Re!ional Factors •
Weather
Raining day --- so Chanel produce waterproof mascara and eyeliner
Sunny day --- so Chanel product foundations with SPF 25+ sunscreen
•
Inuences from di!erent countries and di!erent culture
"urope --- #anning products $sia --- S%in &rightening products
"roducts Their products are mar$eted differently for men and %oman. (elo% products are e9plained &ased on gender.
Boman4s Boman4s product produ ct
They produce different sorts of hand&ags, dress, shoes, je%elries, &i$inis, s$in cares, ma$e-up and perfumes for ladies. Chanel N'7 is a scent %hich comes in perfume &ottle and perfume purse spray. spray. 5t4s the most famous famous fragrance from Chanel. Some of other perfumes from them are Coco "ademoiselle, Chance au Frache, Chance au Tendre, Coco Noir, !llure Sensuelle, Cristalle, Cristalle au @erte and NO/ Poudr?.
"en4s product
Their men4s section includes %atches, perfumes, je%elries, shoes and dress etc. Some of their perfumes are (lu de CA!N8, !llure Aomme, !llure !llure Aomme Sport, !llure Aomme dition (lanche, Pour "onsieur, !ntaeus, goQste and Platinum goQste. "ost of them come in perfume &ottles and spray. Some Some of the fragrance is used in after sha2e as %ell.
Classic Chanel "roducts "roducts
D.77 D.77 Flap Flap &ag &ag
(oyy Ch (o Chan anel el
Chan Ch anel el NO NO77
"att "attee Po%d Po%der er ma$e ma$eup up
ew Cosmetic products The French lu9ury &rand has presented a first ma$eup collection from 8ucia Pica, its glo&al creati2e ma$eup and color designer. The The collection is &ased on the color red, rein2enting this timeless, sensual, and iconic color of passion %ith &oth classic and more more unusual applications, such as eye eye ma$eup.
!fter famously introducing the &eauty %orld to its no% cult Rouge Noir nail color at the FallBinter //K //7 ready-to-%ear cat%al$ sho%, Chanel Chanel is stri$ing out again %ith an inno2ati2e ma$eup collection that4s all a&out red, the color of passion, lo2e, sensuality, and, a&o2e all, femininity, at its most e9treme.
Bith this first collection, the Naples nati2e has reinterpreted red, updating this fa2orite shade for lips, chee$s, and nails %here it has al%ays &een popular as %ell as &ringing the color to eyes. The range re2eals a ne% facet of the iconic shade, synonymous %ith po%er, seduction, and fighting spirit. )5n Uthe collectionV there are also ideas of su&2ersion and classicism. 5t is a&out the po%er of femininity, &ut also the 2ulnera&ility. Red is intense, 2ulnera&le, se9ual, and eternal,* e9plains 8ucia Pica.
ew Cosmetic "roducts #or $ior %Competitor ior launched ne% iorsho% collection recently. The The ne% iorsho% line is aimed at ma$ing morning routines easier. 6!ll 6!ll the products are essentials that e2ery %oman needs,6 says ma$eup artist Peter Philips
Brand Analysis Chanel &ecomes W= 2alua&le &rand in the %orld. 5t &rand 2alue as of "ay D=G is E0.D &illion. 5t has E7.D &illion sales. Refers to the D=, Chanel total sales of 7./ &illion dollars, an increase of DGI. DGI. arnings &efore interest, ta9, depreciation +(5T!1 reached E .K &illion. Chanel4s (5T! (5T! margin margin %as DKI o2er l < #r?al +/I1, st?e 8auder +0I1 and ;ering +DI1, do%n slightly from 8@"A 8@"A and Prada D/I DGI.
Cate!ory share by Country China is W in !pparel and foot%ear, >nited States in WD and >nited ;ingdom is W !ustralia is W in (eauty and personal care, >nited Stated is WD and >nited ;ingdom is W
Chanel Cate!ory 'ar!et
"ricin! 'rends Product
Price
au e Toilette Spray !nd &ottle
XK7 to XK=
!fter sha2e
XD/ to X=
Chanel ress
Starts from XD7=
Chanel Batch
Starts from X,===
Consumer "ro#ile Chanel Cosmetics (uyer Profile in 'ender, !ge and State
Consumer "ro#ile Chanel Cosmetics (uyer Profile in Bor$ Status The chart sho%s most Chanel Cosmetics Consumers are %or$ing part time or students %ho are not in employment
Consumer "ro#ile Frequency of PurchaseY #nce e2ery se2eral years to purchase Chanel Aand&ags 2ery once si9 months to purchase Chanel Cosmetics Cosmetics and s$in care products products Place of PurchaseY Chanel sells its lu9ury goods %orld%ide through more than D= &outiques. (esides &outiques, Chanel sells its &eauty products through department stores and specialty stores, as %ell as online. The company also operates its o%n net%or$ of more than = company-o%ned retail stores %orld%ide.
!%areness !% areness and attitudeY "ost people are a%areness of Chanel and thin$ it is lu9ury &rand %ith high quality 8oyaltyY People %ho are Chanel fans ha2e a strong &rand loyalty and %ould not let other &rands replace Chanel
Ad(ertisin!)Mar*etin! Communications Traditional "edia •
T@ !ds
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"aga3ine
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(rochure
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Poster
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(ill&oard
Nontraditional "edia •
Be&site
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Social "edias
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@ideo #nline
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"o&ile !pplication
Media #or Chanel Chanel spend huge amount of money in their campaign. 5n D=, it spent X.D million in (lu e Chanel <(e >ne9pected4 campaign. "ost of their ad2ertisements are placed on Tele2ision channels and lifestyle maga3ines. They also do huge amount internet ad2ertising using for e9ample 'oogle !dSense !dSense and Perfume shops etc. They use &iggest and emerging cele&rities as their &rand am&assador.
The timeline sho%s ad2ertising spending of Chanel in the >nited States from D=D to D=K. The fashion company in2ested GD million >.S. dollars in ad2ertising in the >nited States in D=D.
+From Statista1
"edia Regionality 5n most countries, Chanel use Face&oo$, T%itter, Pinterest, 5nstagram and Houtu&e as social media (ut in some !sian countries, Chanel also use Bei&o, Hou$u as social media
Competitor spendin! on Media %L+ This statistic highlights the trend in ad2ertising and promotion e9penditure of the 8@"A 'roup %orld%ide from D== to D=7. 5n D=, 8@"A 8@"A 'roup:s glo&al ads spend amounted to a&out . &illion uros.
+From Statista1
"romotion
Chanel4s priced priced classics ne2er go on sale. Hou Hou are not li$ely to find the co2eted D.77 hand&ags or any of the &rand4s iconic pieces mar$ed do%n. Ao%e2er, some ready-to-%ear items, costume je%elry, shoes, and seasonal hand&ags are discounted at least once a year. Pri2ate sale e2ents Chanel does gi2e discounts on clothes and accessories from current and pre2ious seasons. 8i$e most lu9ury retailers, it conducts %hat are called
$i!ital ,trate!ies #or Chanel
Chanel al%ays post their ne% products or collections on their social media &efore these products come out, so people are a%are of the ne% products and release date. They use social media to mar$et their products.
-ootsuite $ashboard
./tension ,ection on social media strate!y
Chanel has a note section on Face&oo$
Aouse rule section on Face&oo$
Celebrity .ndorsements •
!udrey Tautou - !ctress +D==/, Chanel No. 71
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(rad Pitt Pitt - !ctor
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Carole (ouquet - !ctress +//=s, Chanel No. 71
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Catherine eneu2e - !ctress +/0=s-/=s, Chanel No. 71
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(la$e 8i2ely 8i2ely - !ctress +Chanel Spring D=1
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anny Fuller !thlete
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iane ;ruger - - !ctress +Chanel !llure1
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'aspard >lliel >lliel - !ctor +D==, (leu de Chanel1
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;eira ;nightley ;nightley - !ctress +D==G-, Coco "ademoiselle1
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;risten Ste%art Ste%art - !ctress +D=-1
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"arilyn "onroe - !ctress +/7=s, Chanel No. 71
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•
Nicole ;idman ;idman - !ctress +D==-D==/, Chanel No. 71 @anessa @a nessa Paradis - !ctress +Coco1
'op competitors competi tors
PR!! SP!
8#>5S @>5TT#N
CAR5ST5!N 5#R
'>CC5
(>R(RRH
Mar*et Competition SWOT Strategy Strength Aigh quality of the products, classic and timeless designs, comforta&le and functional clothes, strong &rand equity and loyalty
Bea$ness !s a high 2alue &rand, products are sold in 2ery specific and fe%er num&ers of stores. Strong competition from other lu9ury &rands gi2es Chanel a limited mar$et share consumers are li$ely to s%itch &rands
#pportunity #nline sales, e-mar$eting and mo2ing to China to open !sian mar$et
Threats Counterfeits and cheaper &rands $noc$ing off their designs and selling them for more afforda&le rates. >na2aila&ility of products may result to customer shifting to t o another &rand.
,W0' strate!y #or 12CC3 %Competitor Strength Controls their distri&ution channels effecti2ely, effecti2ely, strong chain 2alue %ith suppliers and retailers, has a large product portfolio and is associated %ith >N5CF >N5CF and car companies companies to add &rand 2alue 2alue
Bea$ness Aas to spend a large amount of money to $eep their &rand 2alue and ris$ of their &rand delusion
#pportunity 8u9ury &rands gro% in 5ndia and China and target youth %ith stylish designs
Threats Competiti2e segment and easy product su&stitution >nsta&le mar$et and designs
Line ./tension 8agerfeld features 2arious men4s loo$s throughout his ready-to-%ear sho%s "en4s %ear %ear is a hole in the Chanel &rand. The lifestyle of a Chanel %oman includes a Chanel man
9tension mar$et strategy •
'lo&al launch party
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Commercial
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Short film
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(ill&oards and print
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Relaunch of )8ittle (lac$ Mac$et*
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Moseph- 'ordon 8e2itt
Flower o# Chanel Camellia
Chanel ,lo!an 5n order to &e irreplacea&le, one must al%ays &e different.
"ersonal 3nter(iews 5 inter2ie%ed a Chanel &eauty ad2isor in North Par$, allas. She told me that people %ho are not familiar %ith Chanel or ne2er used Chanel products &efore do not ha2e a strong &rand loyalty, if they did not find the products they %ant or if the products are una2aila&le in store at the moment, they may go to other lu9ury &rands to &uy
similar products instead. Ao%e2er, for people %ho &uy Chanel 2ery often, they ha2e a strong &rand loyalty, if they did not find the products they %ant, they %ould chec$ other stores or chec$ online, they %ould e2en lea2e l ea2e their phone num&ers or email email addresses for her or other Chanel &eauty &eauty ad2isors and tell her to call them %hen the products are a2aila&le in store, store, so they can come come and &uy it.
4uantitati(e Research Research Sur2ey
From the sur2ey a&o2e, the result sho%s me that most &uyers are female people from age DG-7 are more li$ely to purchase Chanel products. products. "ost people are familiar familiar %ith the &rand Chanel. Chanel. "ost people ne2er purchased Chanel Chanel and some people purchased Chanel only on special occasions. "ost people in my sur2ey spend around E=-E7== in the past year for Chanel products
4ualitati(e Research 5 inter2ie%ed D= people to as$ them to gi2e me separate %ords %hen they t hey thin$ of Chanel Aere are the most famous %ords they used to descri&e Chanel
. @intage D. 8u9ury . Classic K. 9pensi2e 7. French G. Style 0. 'irly . Aistory
Mar*etin! ,trate!y To &e >ltimate Aouse of 8u9ury, defining style and creating desire, no% and fore2er. • • • • • • • •
Campaign Commercial Short films online %%%.chanel.com (outiques around the %orld #nline app Social media No co-&randing or licensing licensing
Recommendations
First, Chanel needs to partner %ith more department stores, such as Sephora. "ost people li$e to go to Sephora to &uy &eauty products, %e can find find ior, H2es H2es Saint 8aurent, 'i2enchy 'i2enchy and other lu9ury lu9ury &rands in Sephora, Sephora, &ut %e cannot cannot find any Chanel Chanel &eauty products products in Sephora at all. all. Sephora &eauty ad2isor al%ays need need to tell customers customers that they do not not carry Chanel products. products. 5 thin$ it is 2ery important for Chanel to partner %ith Sephora, &ecause it is a 2ery competiti2e mar$et for lu9ury &rands, if people cannot find Chanel products, they are more li$ely go to ior or H2es H2es Saint 8aurent to find similar products to replace Chanel. Then Chanel %ill lose mar$et competition and a huge amount of profit. Second, Chanel needs to ma$e their %e&site simpler and easy to find products. They ha2e run%ay sho%s on their %e&site4s front page it is really hard to find the specific products products through their %e&site. %e&site. Hou Hou ha2e to find products products &y going through through collections or seasons, and it is 2ery easy to get lost in their %e&site. #nce you find the product on their %e&site, you cannot find chec$out &utton, they do not not support online online shopping, you ha2e ha2e to go to a Chanel Chanel &outique to &uy the product product and some products products listed on the %e&site ha2e no price la&eled, you ha2e to call their assistants to as$ for price. The %hole process ta$es a long time and is not pleasant to shop anymore. 5 recommend them to ma$e their %e&site %e&site simpler, and ma$e it easy for for people to find the the products they %ant, and also support online shopping. (ecause some people may %ant to &uy Chanel products online, &ut they may get tired of finding the products and still could not get enough information, so they may gi2e up on purchasing this &rand, instead, they may go to ior, 'ucci or 8ouis @uitton to &uy products. Third, Chanel needs to carry foundations %ith more color choices. Chanel &eauty products still ha2e a lot to impro2e. They do not ha2e enough color shades for their foundations and po%der foundations. People found it hard to get their s$in tone matched %ith Chanel foundations, so they could not &uy Chanel foundations. 5 recommend Chanel to come out %ith more color choices for their foundations, so it can fit for all customers. 5f not, they may lose their mar$et to other lu9ury &rands. Fourth, open more Chanel &outiques around the %orld. 2en though Chanel has D= &outiques around around the %orld, &ut it is still not enough, a lot of people still cannot find Chanel &outiques in their city, so they ha2e to go to different cities to &uy Chanel products, or they they %ould just &uy other other lu9ury product product such as ior, 8ouis @uitton, @uitton, and Prada to replace Chanel. Chanel. Chanel could could lose mar$et competition &ecause of that. So 5 recommend Chanel to open more &outiques around the %orld, especially in !sian countries.
Re#erences
oes Chanel 'o on Sale - 2er[ +D=, Fe&ruary DG1. Retrie2ed ecem&er =G, D=G, from httpY%%%.designerdiscounted.comfeatureD=does\chanel\go\on\sale.html For&es +D=G1. Retrie2ed ecem&er =G, D=G, from httpY%%%.for&es.comcompanieschanel "alae, S. +n.d.1. PR#>CT STR!T'H STR!T'H.. Retrie2ed ecem&er =G, D=G, from httpYsofiamalae.&logspot.compproduct-strateg y.html Pendleton, . +D=7, Septem&er 1. Chanel Profit (eats Ri2als and "a$es #%ners E (illion Richer in D=7. Retrie2ed ecem&er =G, D=G, from httpY%%%.&loom&erg.comne%sarticlesD=7-=/-chanel-profit-&eats-ri2als-and-ma$es-o%ners--&illionricher-in-D=7 Roy "organ Research +D=1. Retrie2ed ecem&er =G, D=G, from httpY%%%.roymorganonlinestore.comdocsChanel.pdf >llah, R. +D=D, No2em&er D1. Chanel (rand analysis. Retrie2ed ecem&er =G, D=G, from httpsY%a$i&ullah.%ordpress.comD=D=7hello-%orld @alentinoD=G, ]. +D=7, ecem&er D1. Chanel s mar$et 2alue nearly D= &illion financial data for the first time. Retrie2ed ecem&er =G, D=G, from httpsY2alentinoD=G.%ordpress.comD=7DDchanel-s-mar$et-2alue-nearly-D=-&illion-financial-data-forthe-first-time
